Netweb Technologies India (NETWEB) Q2 24/25 earnings summary

Executive summary

• Operating revenue for H1 FY25 grew 96% year-on-year to over ₹4,000 million, with PAT doubling to ₹412 million year-on-year.

• AI segment revenue share rose to 15% in H1 FY25, up 193% year-on-year, reflecting strategic focus on HPC, private cloud, and AI.

• Commissioned a new advanced server, storage, and switch manufacturing facility, supporting the Make in India initiative.

• Began receiving export orders, targeting Middle East and Europe, with margins similar to domestic enterprise business.

• Unaudited standalone financial results for the quarter and half year ended September 30, 2024, were approved and reviewed by the Board and auditors.

Financial highlights

• Q2 FY25 operating income increased 73.2% year-on-year to ₹2,511 million; H1 FY25 operating income up 95.5% to ₹4,004 million.

• Q2 FY25 operating EBITDA rose 85.7% year-on-year to ₹357 million; H1 FY25 operating EBITDA up 100.6% to ₹559.1 million.

• Q2 FY25 PAT grew 69.8% year-on-year to ₹257 million; H1 FY25 PAT up 103.4% to ₹412 million; PAT margin at 10.2% in Q2 and 10.1% in H1.

• EPS for H1 FY25: ₹7.3; CEPS: ₹8.2.

• Total comprehensive income for H1 FY25 was ₹412.84 million, compared to ₹260.53 million in H1 FY24.

Outlook and guidance

• Confident in maintaining 35% year-on-year revenue growth, supported by a robust pipeline and healthy order book.

• AI segment expected to maintain or exceed 15% revenue share in FY25, with further growth anticipated.

• EBITDA margin guidance for FY25 is 14%-14.5%.

• Expansion into Europe and Middle East with plans to set up service networks in four countries.

• Board and management continue to focus on capital expenditure, working capital, and expansion as per IPO objectives.